#1Kommuninvest Investor presentation Kommuninvest Swedish local government debt office AAA/Aaa, Level 1, 0% RW April 2022#2Kommuninvest Investor presentation Disclaimer These materials are confidential and are not for release, publication or distribution, in whole or in part, directly or indirectly, in or into the United States (other than to qualified institutional buyers ("QIBS") (as defined below) who are also "qualified purchasers" within the meaning of Section 2(a)(51)(A) of the Investment Company Act (as defined below) and the rules and regulations thereunder), Canada, Japan or Australia. IMPORTANT: YOU ARE ADVISED TO READ THE FOLLOWING CAREFULLY BEFORE READING, ACCESSING OR MAKING ANY OTHER USE OF THE MATERIAL. These materials have been prepared by and are the sole responsibility of Kommuninvest i Sverige AB (publ) (the "Issuer") and have not been verified, approved or endorsed by any lead manager, bookrunner or underwriter retained by the Issuer. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. These materials are provided for information purposes only and do not constitute, or form part of, any offer or invitation to underwrite, subscribe for or otherwise acquire or dispose of, or any solicitation of any offer to underwrite, subscribe for or otherwise acquire or dispose of, any debt or other securities of the Issuer ("securities") and are not intended to provide the basis for any credit or any other third party evaluation of securities. These materials should not be considered as a recommendation that any investor should subscribe for or purchase any securities. If any such offer or invitation is made, it will be done pursuant to separate and distinct documentation in the form of a prospectus, offering circular or other equivalent document (a "prospectus") and any decision to purchase or subscribe for any securities pursuant to such offer or invitation should be made solely on the basis of such prospectus and not these materials. These materials may not be relied upon for the entering into of any transaction. In particular, investors should pay special attention to any sections of the final prospectus describing any risk factors. The merits or suitability of any securities or any transaction described in these materials to a particular person's situation should be independently determined by such person. Any such determination should involve, inter alia, an assessment of the legal, tax, accounting, regulatory, financial, credit and other related aspects of the securities or such transaction. These materials may contain projections and forward looking statements. Any such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the Issuer's actual performance or achievements to be materially different from any future performance or achievements expressed or implied by such forward-looking statements. Any such forward-looking statements will be based on numerous assumptions regarding the Issuer's present and future strategies and the environment in which the Issuer will operate in the future. 2#3Kommuninvest Investor presentation Disclaimer (cont.) Further, any forward-looking statements will be based upon assumptions of future events which may not prove to be accurate. Any such forward-looking statements in these materials will speak only as at the date of these materials and the Issuer assumes no obligation to update or provide any additional information in relation to such forward-looking statements. These materials are confidential, are being made available to selected recipients only and are solely for the information of such recipients. These materials must not be reproduced, redistributed or passed on to any other person or published, in whole or in part, for any purpose without the prior written consent of the Issuer. These materials are not intended for distribution to, or use by any person or entity in any jurisdiction or country where such distribution or use would be contrary to local law or regulation. In particular, these materials are for distribution in the United Kingdom only to persons who meet the following criteria: 1. (i) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or (ii) persons falling within Article 49(2)(a) to (d) ("high net worth companies, unincorporated associations etc") of the Order or 2. persons to whom these materials may otherwise be directed without contravention of section 21 of the Financial Services and Markets Act 2000 (all such persons being referred to as "relevant persons"). These materials must not be acted or relied on by persons who are not relevant persons. In member states of the European Economic Area, these materials are only directed at persons who are "qualified investors" within the meaning of Article 2(1)(e) of Directive 2003/71/EC. These materials and the information contained herein do not constitute and should not be construed as an offer to sell or solicitation of an offer to buy securities in the United States. The securities described in these materials have not been, and will not be, registered under the US Securities Act of 1933, as amended (the "Securities Act") and may not be offered or sold within the United States or for the account or the benefit of, US persons (as defined in Regulation S under the Securities Act ("Regulation S")) absent registration under the Securities Act or unless an exemption from the registration requirements of the Securities Act is available. The Issuer does not intend to conduct a public offering of any securities in the United States. These materials are not for release, publication or distribution, in whole or in part, directly or indirectly, in or into the United States except to qualified institutional buyers ("QIBs") as defined in Rule 144A under the Securities Act who are also "qualified purchasers" ("QPS") within the meaning of Section 2(a)(51)(A) of the US Investment Company Act of 1940, as amended (the "Investment Company Act"), and the rules and regulations thereunder. By accepting delivery of these materials the recipient warrants and acknowledges that it is either (i) a non-US person (as defined in Regulation S) outside the United States or (ii) a QIB that is also a QP. Any failure to comply with the foregoing restrictions may constitute a violation of US securities laws. 3#4Kommuninvest Investor presentation Table of contents ● Sweden • Facts and figures Public sector Kommuninvest • Purpose and mission Funding Sustainable bonds Visit Kommuninvest's website It contains in-depth information material on Kommuninvest and the Swedish local government sector, including financial reports, rating reports and legal documentation. www.kommuninvest.se/en Bloomberg ticker: KOMINS = 4#5Kommuninvest Investor presentation 111101 B Sweden Facts and figures 5#6Kommuninvest Investor presentation Key facts Sweden Key facts Government Population Currency European Union Unemployment Rating Parliamentary democracy 2021: 10.4 million Swedish krona (SEK) EU member since 1995, not a member of the monetary union, EMU. 2021: 8.8 % Triple AAA-rating & stable outlook 6#7Kommuninvest Investor presentation Export - Sweden's 10 largest trade partners 1. Norway 11 % 2. Germany 11 % 3. United States 8% 4. Denmark 8% 5. Finland 7 % 6. United Kingdom 6 % 7. Netherlands 5 % 8. China 4% 9. France 4% 10. Poland 4% - 7#8Kommuninvest Investor presentation Central- and local government debt Low and stable Percent of GDP 100 90 80 70 • • 28 percent gross central government debt in 2020 Gross local government debt has been stable over the past years and was 13 percent by the end of 2020 Swedish public sector debt development 1996-2020 60 50 40 30 20 10 0 1996 1999 2002 2005 2008 2011 2014 2017 2020 Government Local governments Debt expressed as Maastricht debt Source: Statistic Sweden 8#9Kommuninvest Investor presentation Central- and local government debt Europe Greece Cyprus Italy Portugal Spain France Belgium Croatia Hungary Slovenia EU-27 Austria Slovakia Ireland Finland Poland Malta Netherlands Romania Latvia Lithuania Germany Czechia Denmark Sweden Bulgaria Luxembourg Estonia о Debt expressed as Maastricht debt Reference period: 2020 Source: Eurostat 50 50 100 150 200 250 Percent of GDP 9#10Kommuninvest Investor presentation Sweden Finland France Local government debt Europe Italy Latvia Netherlands Denmark EU-27 Portugal Belgium Austria Germany Poland Estonia Croatia Slovakia Spain Slovenia Romania Ireland Czechia Luxembourg Lithuania Bulgaria Greece Cyprus Hungary Malta 0 2 4 6 8 10 12 Percent of GDP Debt expressed as Maastricht debt Reference period: 2020 Source: Eurostat 14 10#11Kommuninvest Investor presentation Public sector 11#12Kommuninvest Investor presentation Constitutional system Swedish constitution - Instrument of Government Art 1 Swedish democracy is founded on the free formation of opinion and on universal and equal suffrage. It shall be realized through a representative and parliamentary polity and through local self-government. Art 7 Sweden has local authorities at local and regional level. Chapter 14, Art 4 The local authorities may levy tax for the management of their affairs. Central government 30% of public sector spending I I WY RIKSGÄLDEN SWEDISH NATIONAL DEBT OFFICE Local governments 70% of public sector spending Co-equal status between central and local government defined by constitution. KOMMUNINVEST The Swedish Local Government Funding Agency International debt market An unlimited joint and several guarantee covers all liabilities Kommuninvest has already entered into and will subsequently enter into. Local governments cannot legally declare insolvency nor suspend payment. 12#13Kommuninvest Investor presentation Strong institutional framework According to the Swedish Bankruptcy Act a local government cannot be declared bankrupt since they do not fulfil the criteria of being insolvent. This is due to the fact that the local governments have the constitutional right to levy taxes. The Swedish Court has stated that the local governments in Sweden are not covered by the Bankruptcy Act. (RH 1996:75) This view is supported by the Swedish legal doctrine. Requirement for sound financial management Local governments must work according to a sound financial management. Law: "Kommunallagen chap. 8 §1-2 (1991:900)" Balanced budget requirement Annual local government budgets should normally be in balance, imbalances must be restored within 3 years. Law: "Kommunallagen chap. 8 §4-5 (1991:900)" Local government financing principle If the government alters the tasks of local governments, the government must also neutralize their financial effect. Approved by the government and in force since 1993. Financial equalization Imbalances between local governments are equalized annually through income and cost equalization schemes. Law: "Lagen (2004:773) om kommunalekonomisk utjämning" = 13#14Kommuninvest Investor presentation Distribution of public sector spending 70% of public sector spending Local governments The welfare system is the responsibility of the local governments • . Childcare and schooling Healthcare and elderly care Housing Law, order and security Sanitation and waste management • Energy Water supply Local governments are only allowed to borrow for investments. 14#15Kommuninvest Investor presentation Revenue of Swedish local governments in 2020 Category Income tax Share of total revenue 65% State grants 23% Charges Other 4% 7% Source: Statistics Sweden & Swedish Association of Local Authorities and Regions Local governments collect > 90% of income tax Source: Swedish Tax Authority = 15#16Kommuninvest Investor presentation ASSFORSAKMINGAR 田 Kommuninvest Purpose and mission A - 16#17Kommuninvest Investor presentation Swedish local government debt office Founded 1986 by ten local governments. Currently 294 owners/members (total=310), of which 280 municipalities and 14 county councils/regions. Municipalities and county councils Ultimate owners: members of Kommuninvest Cooperative Society Kommuninvest Cooperative Society Ownership association Ownership: 100% Kommuninvest i Sverige AB Credit market company Mission: To provide members with cost-efficient and stable funding. = 17#18Kommuninvest Investor presentation Explicit & unlimited guarantee from members STRONG ✓ Municipalities and county councils cannot be declared bankrupt and cannot cease to exist Swedish municipalities and county councils levy taxes The government ultimately responsible for the local governments STABLE ✓ No Swedish local government has ever defaulted on a payment commitment Sweden's Supreme Administrative Court confirmed the right of local government to sign the joint and several guarantee in a 1994 ruling IMMEDIATELY ENFORCEABLE ✓ Investors can make a claim on any, or all, of the guarantors without a court order ✓ All debt guaranteed by Swedish local governments is BIS 0% risk-weighted in the EU area = 18#19Kommuninvest Investor presentation Value and security for investors Explicit, irrevocable, unlimited, joint and several guarantee from owners. Swedish local governments have constitutional right to levy income tax on citizens and cannot be declared bankrupt. Investors can make a claim on any, or all, of the guarantors without a court order. Regulated by the Swedish FSA which has concluded that the risk exposure associated with Kommuninvest securities is equivalent to government securities. Lowest possible credit risk (0% risk weight, Basel II). Highest possible liquidity (LCR "Level 1", Basel III). Applicable in EU, Schweiz, Singapore, Sweden, UK and USA. Monetary policy counterparty to the Riksbank and a member of the central clearing- and payment system, RIX. Repo eligible at the Riksbank, ECB, Fed, and the central banks of Australia, Singapore and Schweiz. Eligible as collateral at London Clearing House (LCH)* and Nasdaq OMX. *Since March 2021 Kommuninvest bonds can be posted as Initial Margin by both direct clearing members and non-clearing members AAA Aaa 19#20Kommuninvest Investor presentation Value and security for investors Negligible ESG-risk: I. ISS ESG, B-, "Prime", Top 5 of 78 peers II. MSCI, AA III. Sustainalytics, 9.1, Negligible ESG-risk, Top 12 of 74 peers • Highest possible creditworthiness: I. Moody's, Aaa with a stable outlook (P-1) II. Standard & Poor's, AAA with a stable outlook (P-1) AAA Aaa 20#21Kommuninvest Investor presentation Local government sector funding Borrowing trend (SEK bn) Market share Lending portfolio SEK 461 bn 900 100% 400 500 800 90% 450 350 80% 700 400 300 70% 350 600 60% 250 300 500 50% 200 250 400 40% 200 150 300 30% 150 200 20% 100 100 100 10% 50 50 0% 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021* ■Municipal groups ■County council groups ■Kommuninvest ■Market programmes 0 2008 ■Banks I Number of members 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Lending, SEK bn (rhs) 0 21 =#22Kommuninvest Investor presentation Liquidity reserve Liquidity reserve distributed by rating category 6% 1% 93% AAA, 93% AA, 6% A, 1% SEK 53.6bn Liquidity reserve distributed by rating country 16% 11% 3% - 1% ■Sweden, 69% Supernationals, 16% Germany, 11% 69% Finland, 3% - 22#23Kommuninvest Investor presentation A +11,00.00 Funding = 23#24Kommuninvest Investor presentation • Funding strategy · • • Matching assets and liabilities (ALM) Strategic benchmark programs (SEK, USD, EUR) Conservative liquidity management Lending prices always reflect funding levels Funding forecast 2022 SEK 125-145 br long-term funding bn = 24 24#25Kommuninvest Investor presentation Funding portfolio Outstanding funding by currency Outstanding funding by programme 32% 1% 1% 1% 0% 2% 3% 11% ■SEK USD JPY 66% Other 57% 26% ■Swedish benchmark programme Benchmark funding, other currencies Green Bonds ECP, Euro-Commercial Paper Programme Private placement Uridashi = Other 25#26Kommuninvest Investor presentation SEK benchmark programme Total outstanding amount SEK 287 bn 9 outstanding benchmark • bonds 1-2 new benchmarks annually Weekly auctions 6 market makers* Included in major indices Transparent & predictable issuance Repo facility Buybacks offered on an ongoing basis according to predetermined terms *Barclays, Danske Bank, Nordea, SEB, Svenska Handelsbanken, Swedbank 90 80 70 Basis Points 60 60 50 40 30 Kommuninvest vs Sweden Government Bond 5y Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Jan-20 Jul-20 Jan-21 Jul-21 Jan-22 26#27Kommuninvest Investor presentation USD benchmark programme Strategic funding programme with several issues annually Auctioned public offerings with target Benchmark size (RegS and 144A) EUR benchmark programme Euro new strategic funding market since Oct-19 Based on expected growth and need for flexibility Inaugural transaction issued in March - 22 bod - 27#28Kommuninvest Investor presentation Funding programmes Short-term funding Programme Euro-Commercial Paper Swedish Certificate program (STEP label) Euro Medium Term Note Long-term funding SEK Funding = Capacity Retailers EUR 10 bn Barclays, BofA Securities, BNP Paribas, Citigroup, SEK 50 bn Danske Bank, DNB, Crédit Agricole CIB, ING, Handelsbanken, Nordea, SEB, J.P. Morgan, Nomura, Rabobank, UBS Investment Bank Rating P-1 (Moody's) Swedbank No rating EUR/USD Benchmark Unlimited Barclays, BNP Paribas, BofA Securities, Citigroup, Crédit Agricole CIB, Danske Bank, Goldman Sachs, HSBC, JP Morgan, Nomura, Nordea, SEB, Handelsbanken, Swedbank, TD Securities AAA (S&P), Aaa (Moody's) Green bonds Unlimited Barclays, BNP Paribas, BofA Securities, Citigroup, Crédit Agricole CIB, Danske Bank, Goldman Sachs, HSBC, JP Morgan, Nomura, Nordea, SEB, Handelsbanken, Swedbank, TD Securities AAA (S&P), Aaa (Moody's) Swedish Benchmark program Unlimited Barclays, Danske Bank, Handelsbanken, Nordea, SEB, Swedbank AAA (S&P), Aaa (Moody's) Currencies EUR, USD, SEK, CHF, GBP SEK, EUR EUR, USD SEK, EUR, USD SEK 28 28#29Kommuninvest Investor presentation ASSFORSAKMINGAR Sustainable funding - 29 29#30Kommuninvest Investor presentation Green Bonds Environmental management 费 Energy efficiency Waste management Kommuninvest Green Loans measures m Clean transportation • • • • • Sweden's biggest issuer of Green Bonds Financing projects of member municipalities and county councils/regions Eligible projects are screened and approved by the Green Bonds Environmental Committee Green Bonds Framework adheres to the guidelines set out by the Green Bond Principles Second opinion from Cicero. Water management Adaption Green buildings 用 Renewable energy 30#31Kommuninvest Sustainable Bonds investor presentation Origination process Eligible projects Swedish local government investment projects which promote the transition to low carbon and climate resilient growth. Eligible Projects shall be: part of applicant's systematic environmental work; be related to the national or regional environmental goals; target mitigation or adaption to climate change, or environmental mgmt. Eligible loans Loan application must be signed by applicant's Finance and Environmental departments Screening and pre-approval by Kommuninvest's Lending department Quarterly: Eligible Projects reviewed and finally approved by consensus vote in the Kommuninvest Green Bonds Environmental Committee. Green Bonds . Majority of Green Bonds proceeds to new projects (on-going, planned or completed max 9 months before issue). Guideline: total Green Bonds issuance not to exceed total disbursements to Eligible Loans. = 31#32Kommuninvest Sustainable Bonds investor presentation Environmental Committee reviews projects AREAS OF EXPERTISE Energy and climate strategy Urban development and planning Waste management and circular economy, ecological economics Environmental management Environmental engineering Sustainability reporting TASKS • Audit and final approval of Green Loan applications • Advisory board • Review and decide on Green Loan reporting · Review and approve Impact Reporting • Participate in development of Green Bonds framework Members: Susanne Arneborg, Municipality of Borås; Patrik Stenman, Kommuninvest, Marta Fallgren, Region Uppsala; Björn Söderlundh, Kommuninvest; Ann Sörman, Kommuninvest; Andreas Hagnell, Swedish Association of Local Authorities and Regions; Hanna Ryman, Municipality of Örebro; Lisa Järner, City of Mölndal. - 32#33Kommuninvest Investor presentation 18% Eligible loans portfolio Committed SEK 84 bn 19% 2% 0% 17% 43% 1% 6% Disbursed SEK 60 bn 16% 0% 61% 16% 1% >500 approved projects Dec 2021 ■Renewable Energy ■Green Buildings ■Water Management Adaptation Measures Energy Efficiency ■Clean Transportation ■ Waste Management ■Renewable Energy ■Green Buildings ■Water Management ■Adaptation Measures Energy Efficiency ■Clean Transportation ■Waste Management 33#34Kommuninvest Sustainable Bonds investor presentation Plan for Green Bonds Green Bonds issuance focused on strategic funding markets Issuance to date in strategic funding markets SEK, USD and EUR Issuance volume determined by green lending • Total outstanding amount in Green Bonds capped at 100% of total disbursed Green Loans No duration matching Funding to be shorter than economic life of Green loan projects#35Kommuninvest Investor presentation B SOCIAL BONDS Framework Kommuninvest i Sverige AB February 2021 Social Bonds . . 1) The first Social Sustainability Loans have been approved. The Loans shall finance investments that, individually or in combination with a social intervention, promote a socially sustainable society and can contribute to achieving social goals. Concept developed with members/clients. Loans are approved by an independent expert committee, similar to project selection process for Green Loans. Loans provided for two types of investments: Physical investments with an associated social intervention, where the physical investment is a suitable platform for work on social sustainability and where there is a clear link between the physical investment, the social intervention and the social objectives. 2) Physical investments where the physical investment itself qualifies as a social intervention. This applies in cases where research, pre-study and/or proven experience shows that the physical investment can in itself contribute to achieve the set social objectives. 35#36Kommuninvest Investor presentation Core requirements and loan categories Eligible projects must meet following base requirements: 1 promote a socially sustainable society through the development of practices, innovation and/or increased quality in terms of the physical investment, the social intervention or the target population; 2 be part of the borrower's systematic work for social sustainability or contributes to the development of such work; 3 refer to a defined target population; 4+ are long-term; Loan categories Housing and residential environments Safety, security and accessibility Health, education, sports and culture 5 have clear objectives and include systematic assessment of Results. 36#37Kommuninvest Sustainable Bonds investor presentation Social Sustainability Loans SEK 982 mn committed Botkyrka Municipality: Stormwater parks to meet both green and social needs SAMLINGSPLATS SKYM BEHOR FORDAMM BETONGBOTTEN STIG BARK DAGVATTEN DAMM ASTYASKAAM GANGVAS, STEAM STEMM PUKABAKE PLAN GRASYTA FÖR FOTBOLL CANALET STEN Physical investment Stormwater parks including plantings, ponds and wetlands but also footbridge systems, jetty decks, beach square, outdoor gym and exercise tracks. Objectives Improve water quality, increase biodiversity and protect future drinking water production, promote social sustainability. First investment project to have been granted both social and green lending from Kommuninvest Uppsala Municipality: Social considerations in renovation project Physical investment Renovation of 370 apartments according to Eriksberg model Social intervention Tailored renovation in dialogue with residents, standard and future rent tailored to needs and payment capacity Social objectives Increased perceived security and well-being, reduction of "forced" moving due to increased rents 37#38Kommuninvest Investor presentation Contacts Christian Ragnartz Head of Debt Management +46 (0) 70 607 38 34 [email protected] Tobias Landström Deputy Head of Debt Management +46 (0) 10 470 88 83 [email protected] Marcus Waineby Senior Funding Manager +46 (0) 10 470 88 63 [email protected] Per Adolfsson Senior Analyst +46 (0) 10 470 88 66 [email protected] Erik Rosenberg Funding Manager +46 (0) 10 470 87 03 [email protected] Lennart Zetterberg Senior Analyst +46 (0) 10 470 88 65 [email protected] Märta Petrini Senior Analyst +46 (0) 10 470 87 25 [email protected] = 38